Price Momentum Oscillator
The oscillator can be used as a trading signal in two ways.
Firstly, it is recommended to buy when the oscillator crosses its moving average from below, and sell when the oscillator crosses its moving average from above.
Secondly, this oscillator can serve for measuring whether the market is overbought or oversold. If the indicator value falls below -70, the market is considered to be oversold. If the indicator value rises above +70, the market is considered to be overbought.
The indicator view in the chart.
The indicator has the following parameters:
Signal Period - setting of the period for the used exponential moving average.
Period 1 - setting of the Rate of Change indicator period.
Period 2 - setting of the smoothing function period.
Source - setting of the indicator calculation parameters:
Panel - selection of the indicator location in the chart:
- New panel
Line, Exponental moving average
Show value - display of the indicator value on the price scale on the left.
Scale/Auto-scaling - if this option is on, the scale will be automatically calculated, based on the minimum and maximum indicator values, so that the indicator would fit in the chart.
Color - color setting of the indicator.
Visual type - visual setting of the indicator display in the chart:
- Up arrow
- Down arrow
- Axis label
Line style - setting of the line display style:
- Dash - dot
- Dash - dot - dot
Width - setting of the indicator line width.
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